ASSEMBLY, No. 614
STATE OF NEW JERSEY
Introduced Pending Technical Review by Legislative Counsel
PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION
By Assemblyman LUSTBADER
An Act concerning the New Jersey Commission on Capital Budgeting and Planning, and amending P.L.1975, c.208.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 2 of P.L.1975, c.208 (C.52:9S-2) is amended to read as follows:
2. There is hereby created a New Jersey Commission on Capital Budgeting and Planning. The commission shall consist of 12 members selected as follows: the State Treasurer and any three other members of the Executive Branch designated by the Governor to so serve at his pleasure, two members of the General Assembly, two members of the Senate and four public members from the State at large.
The members from the General Assembly shall be appointed by the Speaker of the General Assembly. The members of the Senate shall be appointed by the President of the Senate. No more than one of the members appointed by the Speaker or President shall be from the same political party. Legislative members shall serve while members of their respective houses for the term for which they have been elected.
[The] Of the four public members two shall be appointed by the Governor with advice and consent of the Senate and two by the Legislature, one each by the President of the Senate and the Speaker of the General Assembly, for a term of 6 years and until their successors are qualified, [provided that no more than two of them may be of the same political party, and] provided [further] that [at the time of the initial appointment of the public members, the Governor shall provide for staggered terms by appointing two public members for a term of 6 years, one public member for a term of 4 years, and one public member for a term of 2 years] the members serving on the effective date of this act shall continue to serve until the expiration of their appointments. The President of the Senate shall make the first appointment of a public member upon the expiration of the term of the public member first occurring after the effective date of this act, and the Speaker of the General Assembly shall make the second appointment of a public member upon the expiration of the term of the public member next occurring after the effective date of this act. The public members shall be chosen without regard to political affiliation, based solely upon their experience and expertise in public finance and the capital improvement process. Any vacancy among the public members shall be filled in the same manner as the original appointment, but for the unexpired term only. A member shall be eligible for reappointment.
A chairman of the commission shall be [designated by, and serve at the pleasure of, the Governor] selected annually by the membership of the commission from among the public members.
Members of the commission shall serve without compensation, but public members shall be entitled to reimbursement for expenses incurred in the performance of their duties.
(cf: P.L.1975, c.208, s.2)
2. Section 3 of P.L.1975, c.208 (C.52:9S-3) is amended to read as follows:
3. a. The commission shall each year prepare a State Capital Improvement Plan containing its proposals for State spending for capital projects, which shall be consistent with the goals and provisions of the State Development and Redevelopment Plan adopted by the State Planning Commission and shall be prepared after consultation with the New Jersey Council of Economic Advisors, created pursuant to P.L.1993, c.149 (C.52:9H-34 et seq.). Copies of the plan shall be submitted to the Governor and the Legislature no later than December 1 of each year. The plan shall provide:
(1) A detailed list of all capital projects of the State which the commission recommends be undertaken or continued by any State agency in the next three fiscal years, together with information as to the effect of such capital projects on future operating expenses of the State, and with recommendations as to the priority of such capital projects and the means of funding them;
(2) The forecasts of the commission as to the requirements for capital projects of State agencies for the four fiscal years next following such three fiscal years and for such additional periods, if any, as may be necessary or desirable for adequate presentation of particular capital projects, and a schedule for the planning and implementation or construction of such capital projects;
(3) A schedule for the next fiscal year of recommended appropriations of bond funds from issues of bonds previously authorized;
(4) A review of capital projects which have recently been implemented or completed or are in process of implementation or completion;
(5) Recommendations as to the maintenance of physical properties and equipment of State agencies;
(6) Recommendations which the commission deems appropriate as to the use of properties reported in subsection [b. (6)]c. of this section; [and]
(7) A report on the State's overall debt. This report shall include information on the outstanding general obligation debt and debt service costs for the prior fiscal year, the current fiscal year, and the estimated amount for the subsequent five fiscal years. In addition, the report shall provide similar information on capital leases and installment obligations;
(8) An assessment of the State's ability to increase its overall debt and a recommendation on the amount of any such increase. In developing this assessment and recommendation, the commission shall consider those criteria used by municipal securities rating services in rating governmental obligations; and
[(7)] (9) Such other information as the commission deems relevant to the foregoing matters.
b. Each State agency shall no later than August 15 of each year provide the commission with:
(1) A detailed list of capital projects which each State agency seeks to undertake or continue for its purposes in the next three fiscal years, together with information as to the effect of such capital projects on future operating expenses of the State, and with such relevant supporting data as the commission requests;
(2) Forecasts as to the requirements for capital projects of such agency for the four fiscal years next following such [four] three fiscal years and for such additional periods, if any, as may be necessary or desirable for adequate presentation of particular capital projects, and a schedule for the planning and implementation or construction of such capital projects;
(3) A schedule for the next fiscal year of requested appropriations of bond funds from issues of bonds previously authorized;
(4) A report on capital projects which have recently been implemented or completed or are in process of implementation or completion;
(5) A report as to the maintenance of its physical properties and capital equipment;
(6) Such other information as the commission may request.
c. Each State agency shall, when requested, provide the commission with supplemental information in addition to that to be available to the commission under the computerized record keeping of the Department of the Treasury, Bureau of Real Property Management, concerning any real property owned or leased by the agency including its current or future availability for other State uses.
d. A copy of the plan shall also be forwarded to the Division of Budget and Accounting each year upon its completion, and the portion of the plan relating to the first fiscal year thereof shall, to the extent it treats of capital appropriations in the annual budget, constitute the recommendations of the commission with respect to such capital appropriations in the budget for the next fiscal year.
(cf: P.L.1985, c. 398, s.13)
3. This act shall take effect immediately.
STATEMENT
This bill amends the law creating the New Jersey Commission on Capital Budgeting and Planning by expanding its powers and duties to include an annual assessment of the amount of State debt and recommendations concerning the ability of the State to increase its overall debt.
The membership of the commission is altered to provide that two of the existing public members now appointed by the Governor would be appointed by the Senate President and Assembly Speaker respectively, thereby increasing the number of members appointed by the Legislature's presiding officers to six out of the 12 member commission, with the remaining six being appointed by the Governor.
Expands powers and duties of Commission on Capital Budgeting and Planning.